Power generation and distribution includes the generation of real power Reactive power describes the background energy movement in an Alternating Current (AC) system arising from the production of electric and magnetic fields. These fields store energy which changes through each AC cycle. Devices which store energy by virtue of a magnetic field produced by a flow of current are said to absorb reactive power; those which store energy by virtue of electric fields are said to generate reactive power.
Power flows, both actual and potential, must be carefully controlled for a power system to operate within acceptable voltage limits. Reactive power flows can give rise to substantial voltage changes across the system, which means that it is necessary to maintain reactive power balances between sources of generation and points of demand on a zonal basis. Unlike system frequency, which is consistent throughout an interconnected system, voltages experienced at points across the system form a “voltage profile” which is uniquely related to local generation and demand at that instant, and is also affected by the prevailing system network arrangements. Improperly regulated reactive power can lead to damage of equipment and can require increased sizing of conductors in equipment to carry both the real power and the reactive power.